Various liquid storage and heating systems have heretofore been proposed; however, because of certain inherent design characteristics they are beset with one or more of the following shortcomings: (a) the system components are of bulky, costly and complex construction; (b) separate heating elements are required for both the upper and lower sections of the storage tank; (c) there is no controlled circulation of the liquid, accumulated in the upper storage section of the tank, with the liquid accumulated in the lower storage section of the tank; and (d) an inordinate amount of servicing and maintenance is required in order to maintain the system in proper working order.